When Goodwill Is Acquired by an Investor in an Associate,the

question 25

Multiple Choice

When goodwill is acquired by an investor in an associate,the amortisation of goodwill is:

• A)spread evenly across the useful life of the investment;
• B)not permitted;
• C)included in the determination of the investor's share of the associate's profit or loss;
• D)included in the revaluation of the investment.

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Definitions:

Negative Amount

A value less than zero, representing a deficit or loss in financial terms, such as overdrawing a bank account or spending more than one's income.

Division of Net Income

The distribution of earned profits among partners, shareholders, or other entities entitled to a share.

Partnership Agreement

The formal written contract creating a partnership.

Full Time

Refers to a standard work schedule, typically involving a minimum number of hours per week, considered as full employment.